Simplifying customs’ procedures could boost Oman’s logistics potential, says IRU

Muscat: Simplifying customs procedures for traders that transport goods over land will save a lot of time and money and give a boost to Oman’s potential as a logistics hub in the region, the International Road Transport Union (IRU) said.
The IRU, which hosted a workshop with the Ministry of Transport and Communications at the Oman Chamber of Commerce’s headquarters on Sunday, stressed the benefits of the TIR (Transports Internationaux Routiers, International Road Transport) system to ease trade and transit of goods in the Sultanate.
Based on the United Nations’ TIR Convention, the TIR system is currently in place in 69 countries. It is the only global customs transit system and includes mutual recognition of customs controls, among other features. In the Gulf region, only Kuwait and the United Arab Emirates have joined.
For Oman, it would be very beneficial to join the TIR as well, Habib Turki, project coordinator for Africa and the Middle East at IRU, told the Times of Oman.
“Oman is at the crossroads of different regions. It could be a great re-export platform if you provide the right soft infrastructure to complement the excellent road infrastructure found here. You need to offer the right procedures to make the country more attractive for transit and re-export, so it can act as a bridge between Africa, the Arab states and Central Asia,” he said.
Ahmed bin Mohammed bin Salim Al Futaisi, Minister of Transport and Communications, told reporters that Oman is interested in joining TIR.
“Oman would like to start exploring the possible benefits of being a member of this system. It will definitely ease the transport of goods from Oman to neighbouring countries and beyond and will improve our ranking among the logistics indices. It will also benefit our trade with Central Asian countries and China. There is a direction among other GCC countries to adopt the system. We are looking forward to being a member of this system,” he said.
During the presentation by the IRU, the audience was eager to know more about the practical implications this might have.
Samir Al Balushi, supply chain manager at the Oman Refreshment Company, said he was not so sure about the benefits of the system.
“It will not help in avoiding any queues or getting priority when carrying the right documents. It is only the customs work, which will be unified, not the customs checks at the border,” he pointed out.
IRU’s Turki said the system will not solve all issues, but is designed to ease the transit of goods.
“By streamlining customs procedures and ensuring shorter waiting times, the system will ease transit, but it cannot solve all problems. Some operators are not trusted by customs and physical inspection of all cargo is still carried out at checkpoints. This system facilitates transit of goods, not imports,” he noted.
The cost-benefit equation is also a concern for businesses. Al Balushi said he would face practical issues.
“Since a lot of modifications to our trucks will be needed, the third parties, which provide us with trucks and containers, will resist modifying the fleet, as they will have to invest in modifying the trucks and containers, but the resulting benefits will be nil,” he added.
Rani Wehbe, senior advisor for the Middle East at IRU, said the IRU “is looking forward to cooperating with the relevant authorities and stakeholders for the accession and implementation of the TIR system in Oman for the multiple economic benefits it provides to the Sultanate.”
He also underscored Oman’s strategic location and the value the TIR system offers for improving its logistics performance.